Cato Band Uniforms uses a standard costing system. The standard material and labor costs for producing a marching band hat are as follows:
Materials (0.90 yards $12.00) $10.80
Direct labor (1.20 hours $14.10) $16.92
During May, the company produced 3,800 band hats; 3,840 yards of material were purchased for $41,472, and 3,050 yards of material were used in production. Also during May, 4,460 direct labor hours were worked at a cost of $53,520. Calculate material price and quantity variances and labor rate and efficiency variances. Indicate whether the variances are favorable or unfavorable. (Round intermediate calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 125. Enter all variances as a positive number.)
Material Price Variance $
FavorableNeither Unfavorable nor FavorableUnfavorable
Material Quantity Variance $
UnfavorableNeither Unfavorable nor FavorableFavorable
Labor Rate Variance $
FavorableUnfavorableNeither Unfavorable nor Favorable
Labor Efficiency Variance $
FavorableUnfavorableNeither Unfavorable nor Favorable
